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The plan, in full

Why three measures, and why now.

This page is for the neighbor who reads everything. Five minutes, no spin: what a charter city actually is, why Benicia needs a limited one, and how the three measures fit together.

Start with the problem

Benicia is losing its biggest taxpayer.

Valero's shutdown removes roughly $7.7 million a year from Benicia's $65 million general fund. That is about 12 cents of every dollar that pays for police, fire, streets, and parks. It is the largest budget shock in the city's modern history, and it is not temporary.

At the same time, the city's revenue tools have not kept up. Benicia's business tax rates have not changed in 15 years while costs rose about 75 percent. And when property changes hands, the city collects 55 cents per $1,000 of the sale price, a rate frozen by state law since long before any of this happened.

So the choice is real: keep cutting services, or update how the city pays for them. This plan updates it, and it does that by asking new development and the largest transactions to pay a share, not the people already living here.

The honest part: no single measure closes a $7.7 million gap. This plan starts near $400,000 a year and grows past $1 million as Benicia redevelops. It is how the city captures a share of its own growth over the next 20 years. The rest takes discipline and new business.
Some background

What is a charter city?

California cities come in two kinds. A general law city runs on the state's default rulebook: the Legislature writes the rules, and the city follows them. A charter city adopts its own local constitution for city affairs, a power written into Article XI of the California Constitution.

Charters are not exotic. About a quarter of California's 483 cities have one, and nearly 58 percent of Californians live in a charter city, including the state's ten largest. Twenty-five Bay Area cities are chartered, in every one of the nine counties, from Santa Rosa down to Gilroy. Solano County has exactly one: Vallejo. Most of these charters date back to the early 1900s. This is a century-old, ordinary feature of California government.

See the map: all 25 Bay Area charter cities and what each one charges →

And a charter is not a blank check. It does not exempt a city from Proposition 13. It does not weaken Proposition 218, the state rule that says voters must approve new local taxes. It does not exempt a city from the Brown Act's open meeting requirements or from state housing law. Those apply to every city in California, charter or not.

The reason this is on your ballot

One state law, one sentence.

State law caps a general law city's transfer tax at 55 cents per $1,000 of sale price. That is Revenue and Taxation Code section 11911, and there is no exception. A general law city cannot change that number, no matter what its voters want.

Charter cities can. Their voters can set a local rate that fits their city. As of the state's last count, 26 charter cities have done exactly that.

That is the entire reason Measure 2 exists. Benicia cannot adopt the transfer tax in Measure 3 without a charter. Not because anyone wants new powers at City Hall, but because that is the legal key the state requires. No charter, no local transfer tax. Period.

Timing matters too. State law allows a city to vote on a charter only at a November general election in an even year. If Benicia waits, the next chance is November 2028, two more budget cycles into the Valero gap.

The package

The three measures, in detail.

State law will not let these appear as one question, so they arrive as three. Two are a matched set: Measure 2 unlocks the tool, Measure 3 puts it to work, and neither does anything alone. Measure 1 stands on its own. One decision, spread across the boxes the law requires.

Measure 1

Modernize the business tax

Benicia's business license tax has not been updated in 15 years. Today a home-based business and the city's largest companies can pay nearly the same flat amount. This measure fixes that.

  • About 1,800 of Benicia's smallest businesses stop paying any license tax. Under $100,000 a year in receipts: zero.
  • Rates are set by business type, so the tax finally matches the business.
  • No business pays more than $1,500 in year one. The cap rises 10 percent a year, topping out at $25,000.
  • A marine terminal tax is added so heavy industrial shipping pays its share.
Measure 2

Approve the limited charter

The one-page charter described above. It has one function: it lets Measure 3 take effect if voters approve both. It grants no other power, changes nothing else about city government, and only voters can ever amend it.

Measure 3

Adopt the transfer tax

A one-time tax when property changes hands, designed so new development and major transactions carry it, not current residents.

  • Applies to commercial sales, homes built in 2027 or later, and any sale of $2 million or more.
  • Homes built before 2027 and selling under $2 million pay nothing. So do family transfers and deed-restricted affordable housing.
  • Rates: 0.4 percent under $2 million, 0.6 percent up to $10 million, 0.8 percent above that.
  • Annual audits and citizen oversight. No sunset except by the voters themselves.

For scale: the typical Benicia home sells for around $800,000 and would owe nothing. A new $900,000 home built in 2027 would owe $3,600, once, at sale. The real revenue is in what comes next: the Rose Estates project plans about 1,620 homes, worth roughly $5.8 million in transfer tax as they sell, and planning has started on about 3,500 more units on the Valero site.

We heard you

2024, without the spin.

Benicia voted on a version of this in 2024. The charter lost 46 to 54. The transfer tax lost 41 to 59. The same voters passed Measure F for streets by 22 points on the same night, so this was never about refusing to fund the city. Voters had specific objections, and they were right.

"The tax hits every home sale, from dollar one."Fixed. Existing homes under $2 million now pay zero.
"The charter hands City Hall unknown power."Fixed. One page, one function, amendable only by voters.
"Nobody explained where the money really comes from."Fixed. New development and commercial sales, and that story now leads.

More questions? The FAQ on the home page answers the common ones, including the sharp ones.

That's the plan

Reach out to help.

A question, a yard sign, an endorsement, a speaker for your group, or just the occasional update. One email address, and a volunteer reads every message.

[email protected]